Gas Trial shut down over chemical concerns

ABC news

Cougar Energy is testing whether it can extract gas by burning coal seams underground at a plant near Kingaroy.

But the Environment and Resource Management Department says the company has reported traces of carcinogenic chemicals in tests on monitoring bores.

Department director-general John Bradley says farmers near the site are being asked not to use bores until further tests prove there is no more contamination.

Mr Bradley says contaminated water leaked into a creek at Carbon Energy’s trial site in Chinchilla, while Linc Energy has reported high salt levels in water near their site on the Western Downs region.

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